Hindustan Aeronautics Limited engages in the design, development, manufacture, repair, overhaul, upgrade, and servicing of aircraft, helicopters, aero-engines, avionics, accessories, and aerospace structures in India and internationally.
The company provides basic trainer and light combat aircraft, light transport aircraft, intermediate jet trainer aircraft, light utility and combat helicopters, maritime utility helicopters, and turbofan and turboshaft engines, as well as aerospace products, which include aluminum alloy riveted structures, propellant tanks, and cryogenic engines.
It also offers avionics, accessories, and materials comprising flight data recorders, laser range systems, head up displays, auto stabilizers, inertial navigation systems, hydraulic pumps, fuel management systems, oxygen systems, gyroscopic/barometric instruments, panel instruments, ejector release units, flight control systems, wheels and brake systems, ground radars, radar computers, missile inertial navigation solutions, air borne secondary radars, radio navigation equipment, communication equipment, rolled rings, rubber products, powder metallurgy, forgings, and castings.
In addition, the company provides air data computer that measures pressure altitude, calibrated airspeed, true airspeed, Mach number, vertical speed, and temperature in the atmosphere. Further, it offers various services in the areas of aircraft and helicopters MRO, and power plants, as well as systems, accessories, and avionics. The company also exports its products. It serves space, defense, and civil industries. The company was incorporated in 1940 and is based in Bengaluru, India.
. The company also exports its products. It serves space, defense, and civil industries. The company was incorporated in 1940 and is based in Bengaluru, India.
FINANCIAL INFORMATION
| INR MILLIONS | FY24 | FY25 |
| Total Assets | 780,951.8 | 1,062,668.5 |
| EBIT | 73,645.7 | 69,373.8 |
| Profit after tax | 76,209.5 | 83,640.5 |
| Total Revenue | 303,810.8 | 309,809.5 |
Source: Company financial Report
Key Highlights:
Strong Asset Growth: HAL’s total assets increased significantly by 36.1%, indicating expansion in scale or increased investments.
Revenue Stability: Total revenue grew moderately by 2.0%, showing consistent business performance.
EBIT Decline: Despite revenue growth, EBIT fell by 5.8%, possibly due to higher operating costs or increased provisions.
Healthy Profit Growth: Profit after tax (PAT) increased by 9.7%, reflecting improved net efficiency or one-time gains.
| Price to Book Value | 523 |
| Dividend Yield (%) | 0.69 % |
| Return on Equity | 26.1 % |
| Return on capital (%) | 33.9 % |
| Earning Per Share | 59.46 |
Source: Company financial Report
SHAREHOLDING PATTERN
Source: Company financial Report
| Majority shareholders | Promoters |
| Pledged Promoters Holdings | None |
| Mutual Fund | Held in 39 Schemes (4.31%) |
| FIIs | None |
| Promoters with Highest Holdings | President Of India (71.64%) |
| Highest Public /Private Shareholder | Life Insurance Corporation Of India (2.72%) |
| Individual Investors holdings | 7.02% |
Source: Company financial Report
SHAREHOLDING COMPARE (% Holding)
| Promoters | 71.64% | 71.64% | 0% |
| FIIs | 0% | 0% | 0% |
| Mutual Fund | 4.31% | 4.64% | -0.33% |
| Insurance Companies | 3.34% | 2.92% | 0.42% |
| Non institutional Investors | 7.98% | 7.95% | 0.03% |
| Others | 0% | 0% | 0% |
| Other DIIs | 12.73% | 12.85% | -0.12% |
Source: Company financial Report
COMPARE VALUATIONS WITH PEERS
| Company | PE | EV/EBIDTA | ROCE % |
| Hind.Aeronautics Ltd | 40.02 | 23.53 | 33.87̌̌ |
| Bharat Dynamics | 122.73 | 31.02 | 24.23 |
| BEML Ltd | 57.44 | 28.33 | 15.25 |
| Azad Engineering | 153.87 | 48.21 | 19.89 |
| Paras Defence | 106.50 | 39.78 | 15.43 |
Source: Company financial Report
The Aerospace and Defence (A&D) sector is a broad and multifaceted industry that includes Commercial and General Aviation, Military Aircraft, Space Systems, Ground Defence, and Shipbuilding. In 2023, the industry successfully rebounded from the disruptions caused by the COVID-19 pandemic, showing recovery in both civil and defence segments.
Looking ahead to 2024–2025, the Defence sector is expected to see continued growth as numerous nations have significantly increased their defence budgets to enhance military readiness amid ongoing geopolitical tensions. On the civil side, global air passenger traffic returned to pre-pandemic levels by the end of 2023, fueling a surge in large-scale manufacturing orders and increased demand for aftermarket services in the A&D space.
Industry forecasts suggest that the global A&D market will grow from $884 billion in 2023 to approximately $1,230 billion over the next five years. While geopolitical dynamics primarily drive the defence segment, the resurgence in air travel is the key catalyst for growth in the civil aviation sector.
Despite this optimistic outlook, the industry continues to face notable challenges such as supply chain vulnerabilities, pressure to improve operational efficiency, cost reduction demands, and workforce management issues. In response, Original Equipment Manufacturers (OEMs) are increasingly turning to local sourcing for materials and components. To further enhance efficiency and reduce costs, many are adopting advanced technologies, fostering innovation, and transitioning towards digital manufacturing and smart factory models.
PRICE ACTION
| Parameters | Range |
| Volume Traded (Lakhs) | 20.81 |
| Current Price | 5,034.50 |
| Earnings Per Share(EPS) | 59.46 |
| Previous Value | 5,001.10 |
| Open Price | 5,001.10 |
| Today low/high | 4,962/5,064 |
| 52 week low/high | 3,046.05/5,674.75 |
Source: National Stock Exchange
India, home to the world’s third-largest armed forces, is expected to increase defence spending significantly in the coming years. Key procurement priorities for the Ministry of Defence include new acquisitions such as the Su-30MKI aircraft, LCA Mk1A, AL-31FP engines for the Su-30MKI fleet, RD-33 engines for MiG-29 fighters, additional C-295 transport aircraft, and MQ-9B drones.
Global aerospace OEMs recognize India as a vital market for both production and export, driven by strong demand, a strategic geographic location, skilled engineering talent, and cost-effective labor. In an effort to tap into opportunities in the civil aviation sector, the Indian government has revised its Maintenance, Repair, and Overhaul (MRO) policy to improve the ease of doing business and position the country as a global MRO leader.
Currently, nearly 90% of India’s MRO activities are conducted abroad, mainly in countries like Sri Lanka, Singapore, and Malaysia. However, domestic capabilities are gradually expanding. Given India’s strategic location between Europe, Southeast Asia, and the Middle East, and the anticipated rise in its commercial aircraft fleet, the country is poised to become a regional hub for MRO services.
Source: Company financial Report
The asset has shown a strong bullish reversal from a bottom near the 3,000 level, marked by a consistent series of higher highs and higher lows.It has now broken above the 5,000 resistance zone, currently trading around 5,024, suggesting strong bullish momentum.
Key Support Levels
4,943 – Recently broken resistance, now acting as immediate support.
4,668 – Previous resistance and consolidation zone.
4,268 – Strong support from a prior consolidation.
3,844 and 3,043 – Major historical supports.
Key Resistance Levels
5,677 – The next major resistance based on previous highs.
5,951 (upper right corner) – Possible upper target if bullish momentum continues.
Relative Strength Index (RSI) – Analysis
Inference from price action: The asset has made a strong upward move from the 3,000 level to over 5,000, indicating strong buying momentum.
Likely RSI level: The RSI is likely above 70, suggesting the stock is in the overbought zone. Implication: This could imply a short-term cooling off or consolidation, but overbought RSI in a strong uptrend doesn’t necessarily mean reversal—it often signals momentum continuation.
The current breakout above 5,000 is significant and may lead to a continuation towards 5,677 and potentially higher. However, a retest of 4,943 support could occur before further upward movement. The overall structure remains bullish unless price falls below 4,668.
